Offline laundromats should not become the "workers" of laundry O2O
Release Time:
2015-01-28 09:21
Source:
Distributing flyers, issuing membership cards, relying on familiar customers... The previously effective laundry store business model is increasingly impacted and even becoming unsustainable as laundry O2O platforms surge like a flood.
Online laundry platforms such as eDaiXi, Taidi, DryCleanKe, Bubble Laundry, Lazy Cat Laundry, DaXiLa, and E Dry Clean Network are heavily funded by the capital market. At the same time, they are aggressively eating into the business of offline laundry stores. Previously, customers personally brought their clothes to the store and completed transactions face-to-face, but now these online platforms have taken over the customers. Every day, the only people seen are the delivery personnel from these platforms, and the stores don't even know the customers' names. Without customer information, they can't even send promotional messages, let alone make a profit.
Currently, laundry O2O platforms mainly fall into two categories: one has its own laundry factory or stores, represented by Rongchang eDaiXi; the other relies entirely on third-party laundry services, operating as a light-asset online platform, represented by Shanghai Taidi Laundry. Let's briefly analyze these two types:
The first case: owning laundry stores and building an online ordering platform to improve service quality and efficiency. This seems to be a relatively reliable model at present. However, as efficiency improves and the service radius expands, some franchisees will inevitably face operational difficulties and eventually close down. Previously, each store basically served one community, which limited breakthroughs but allowed them to operate comfortably. However, with a professional online ordering platform and delivery system, the established "territories" are largely broken, and one store may serve two or more communities.
Of course, there is another situation where the store is not a franchise but an independent brand. This situation generally does not face the issues mentioned above. If the online platform and service system are well developed, it is very likely to increase business volume and promote single-store growth. The premise is that service quality and logistics pickup and delivery must be as perfect as possible. Most importantly, user information must be collected to the greatest extent. Even if collection points are set up nearby in the future, this will be a valuable resource. User information is currently the greatest asset, especially in O2O. However, the current laundry store layout is nearly saturated, so how to snatch business from other laundry stores depends on your own ability.
The second case: only the online platform is owned, and logistics and delivery are temporarily self-managed, but the final service is entirely completed by third-party laundry stores. This appears to be a light-asset company, but this industry differs from others because laundry service is difficult to standardize. This is why many stores have complaint rates exceeding 20%. The same piece of clothing may be considered well-serviced by some but unsatisfactory by others, sometimes leading to complaints to regulatory authorities for compensation. Besides some customers being overly picky, irregular operations and substandard detergents by some laundry stores are important causes of quality issues.
A few years ago, well-known laundry chain brands Funait and Pland Water Wash were exposed by the media for using cheap detergents and other issues, causing a huge uproar in the industry and making many people feel the laundry industry was too "chaotic" and "dark." Why did this happen? We know many laundry franchisees are individual business owners who only sign brand authorization and minor brand usage and violation penalty clauses with headquarters. This makes it difficult for headquarters to supervise individual franchisees engaging in illegal activities for high profits, damaging the brand image.
Most online platform partners are also franchisees, making it hard for headquarters to supervise them. Moreover, as just a partner with little profit margin, if you take my customers and don't let me earn money, this situation won't last long. For laundry stores, besides working for low wages and being extremely busy, what else can they gain? If one day they choose other merchants or build their own laundry factory or store, kicking you out is not impossible. In short, you can't be content with just working for them.
How to deal with the impact of the above two situations on existing laundry stores? There really is no magic solution, only "seeking change." How to change? I don't know either. However, with change comes the sacrifice of some stores. After all, the market is only so big. When costs decrease and service quality improves, efficiency naturally increases. Efficiency improvement inevitably means some will be eliminated. Whether it's others or yourself depends on whether you have the courage and perseverance to break through and transform.
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